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Reputation and earnings dynamics

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  • Jovanovic, Boyan
  • Prat, Julien

Abstract

Cyclical patterns in earnings can arise when contracts between firms and their workers are incomplete, and when workers cannot borrow or lend so as to smooth their consumption. Effort cycles generate occasional large changes in earnings. These large changes are transitory, consistent with recent empirical findings.

Suggested Citation

  • Jovanovic, Boyan & Prat, Julien, 2021. "Reputation and earnings dynamics," Journal of Economic Theory, Elsevier, vol. 191(C).
    • Handle: RePEc:eee:jetheo:v:191:y:2021:i:c:s0022053120301514
    DOI: 10.1016/j.jet.2020.105158
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    More about this item

    Keywords

    Reputation; Career concerns; Earnings dynamics; Endogenous fluctuations;
    All these keywords.

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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